What questions should I ask motivated seller?

Question

I recently received a call back for a destressed property in my area. The owner left a message concerning my yellow letter, so I take this as a sign of interest. I viewed the home to find that it is currently vacant and headed for foreclosure. It is behind a couple of thousand in taxes. It is a 2 bed 1 bath currently appraised at $45000 and seems to be in pretty good condition. How should I approach seller? Im as tree as the grass in spring, so all input is welcome, particularly those with experience in said matters.

Thanks in advance

Larry Turowski · Answer

@Terrance Merck The first question is for you.  What would you pay for the house?

The two most important questions to ask are, "What do you owe on the house?" and "What is the lowest price you could take for the house?"

The first question might end the conversation unless you can do a short sale.  The second question gives you an idea of how motivated they are, if you are in the same ballpark, if they are realistic.  Ask it in your own words and after building rapport.

Terrance Merck · Answer

@andru sexton. That particular deal di not go through. The property went into foreclosure. After providing a better assessment. There was no profit margin that would have benefited either side.

I haven't done any deals yet. Though I am much more comfortable and better familiar with process.

Thanks for follow up

Terrance Merck · Answer

Thanks Larry T. And Jared. I will use your advice. Larry after pulling comps I wouldn't pay much more than $16000. Jared I did check county auditor regarding taxes.

Jared Lichtin · Answer

Check with the county auditor to confirm exactly how behind they are on the taxes.  They might be lying to you, or not sure exactly how much.  Ask them if they have had a home inspection done, and if they would be amicable to sending you a copy.  Free housing inspection would be huge.  If you are concerned they might be hiding something, you may want to have your own inspection done.  Once you get an idea of how much work it has to have done, then keep a number in mind for your own purposes.  Don't look at the 45k, figure out what would be a good price for you!  Hope that helps.